STRIKES AFFECTING ECONOMIC GROWTH

The recent strikes and deadlock between Transnet and the unions has raised cause for concern. These strikes had an adverse effect on the agricultural, forestry and fishery industries and added pressure to the already vulnerable sectors.

In the first quarter of this year 30 000 jobs were reclaimed and in the past 100 000 jobs were shed. Due to continuous strikes more jobs were placed under threat as these sectors are facing production loses.
 
Minister Tina Joemat-Pettersson, the Minister for Agriculture, Forestry and Fisheries warned in a media statement that the prolonged strike action was negatively impacting the countries economic potential. She further added,” While the loss of jobs remains our biggest concern, a further challenge is the potential compromise of customers and international markets. The industry is bound by contractual obligations for example freshness and prompt delivery. Failure to adhere to our contractual agreements has the potential of impacting negatively on our reputation as a competitive and efficient player on the global market.”

While salary negotiations is seen as necessary by workers to ensure workers earn a living wage, the effects on productivity and the costs to the economy have to be considered as well.
  
A middle ground has to be found if South Africa is to attain the goals highlighted in the Medium Term Strategic Framework for 2009 to 2014.

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